PURR falls over 5% despite Hyperliquid's 21.7% Q3 revenue increase

Hyperliquid Strategies Inc. (NASDAQ:PURR) traded more than 5% lower on Thursday despite Hyperliquid's Q3 revenue increasing 21.7% to $190.9 million. Hyperliquid's trading and network revenue increased to $68.6 million in September from $43.8 million in July. September revenue, including reserve yield, totaled $83.5 million, the highest monthly amount since October 2025. Native perpetuals contributed the largest revenue share, generating $141.9 million. Quarterly revenue nevertheless stood 36.5% below the year-earlier level.

Hyperliquid started receiving a portion of USDC reserve income on August 27 through an arrangement named AQAv2. The arrangement generated $17.3 million in just over a month, equivalent to an annualized rate of approximately $197.6 million. However, the arrangement involves a counterparty that competes with Hyperliquid in related businesses, and the contract terms are not publicly accessible.

The Assistance Fund purchased HYPE on all 92 days of the quarter, spending $148.7 million, 5.7% more than in Q2. However, the average price paid increased to $72.93 from $50.79. The higher prices meant the fund acquired 26.4% fewer tokens, totaling 2.04 million HYPE, despite the larger budget. HYPE's available float increased by approximately 1.70 million tokens after accounting for buybacks, staking emissions and team distributions.

Sunny Shi of Syncracy Capital, who contributed the foreword to a report, views buybacks as offsetting supply from development funding and vesting rather than independently generating growth. Shi argued that independent teams developing on Hyperliquid should drive future growth instead of Labs' treasury spending.

Trump said at a White House meeting with technology and crypto executives on August 19 that the CFTC was working to enable US access to Hyperliquid. Kraken's parent company proposed a regulated derivatives venue on Hyperliquid within a month of that meeting, with Bitnomial designated as operator. The proposal had not received regulatory approval by quarter-end. US persons remained barred from the platform for the whole of Q3.

The quarterly average of daily traders reached a record 65,161, a 20% increase from Q2. Open interest at quarter-end totaled $16.76 billion, an increase of nearly 80%. Equities displaced commodities as HIP-3's largest asset class after equity trading volume increased 160.8% from the preceding quarter. However, trade[XYZ] accounted for 98.9% of HIP-3's total volume, creating heavy reliance on a single operator.

HyperEVM's total value locked decreased 17.4% despite increases in transactions and wallet counts. HyperEVM's decentralized exchange volume fell 24%. The results suggest that greater network usage has not yet produced comparable increases in committed capital or trading volume.